The Chinese economy maintained a stunning growth rate in 2007. On December 10, 2007, the Morgan Stanley Asia Chairman commented that the Chinese economy has never grown so well and fast as it did in the last five years. Now, China dominates not only the labor-intensive manufacturing industries but also the consumer electronic product manufacturing industries. The country has truly become the engine for the global economy.
In 2007, the stock market experienced an unprecedented boom. The key share index broke the 6,000-point mark for the first time in October though it plummeted to around 5,000 later amidst the tightening measures taken by the government. The real estate industry continued to expand quickly and property price hikes were very common all over the country.
The Chinese are getting richer and richer. More people have become multi-millionaires. Now China, following the US, ranks the second in the word in terms of the number of billionaires. Ordinary Chinese are earnestly following domestic and foreign economic issues. Increased numbers of people have swarmed into the stock and securities markets in hope of making big money.
Some problems have also cropped up in 2007. The economy was on the verge of overheating with bubbles in the real estate and capital markets. Domestic consumer prices kept soaring. The CPI hit a decade-high, reaching 6.9 percent in November. As a result, the country has fallen victim to high inflation. Facing these problems, the Chinese government will focus on cooling the economy and curbing inflation in 2008. Additionally, the government authorities will further reform the current distribution system that has created a great imbalance in wealth accumulation throughout Chinese society.
The following six articles display different dimensions of economic development in 2007. You will read about Chinese economic achievements and problems as well. You will discern the great impact the economic transformation has made on Chinese society. You can also hear the voices of two specialists from two totally different fields, the securities business and the movie industry. Enjoy your reading!
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Wealth expands amid booming economy
In 2007, Chinese economy was still growing at an amazing rate and the secondary market was experiencing an unprecedented boom. Chinese people got richer. Under such circumstances, the byproducts of wealth were noticeable almost everywhere throughout society. (More) | |
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Distribution system undergoing a change
Researchers have noted that China's limited consumption and overheated investments are caused by ever increasing deposits. China's savings ratio is much higher than the investment rate. The excessive savings are a result of the current income distribution system. (More) | |
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China experiences rising consumer prices
Beginning in August 2007 the growth rate of the Chinese CPI remained above 6% and hit a record 6.9 percent in November. This was a definite warning sign. China, however, was not the only country to fall victim to high inflation. Most of the world experienced high CPIs in 2007. (More) | |
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Overheated economy lurking
In 2007 the Chinese economy was in danger of excessive liquidity and high inflation. The central government enacted a series of measures to balance the economy. But the trade surplus still rocketed and consumer prices still soared. Relatively high inflation was the end result. (More) | |
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'A dull year' for Chen Feng, a fund manager
Chen Feng is in charge of a total of 27 billion yuan in Bosera stock funds, but he's nothing special according to his colleagues. He himself thinks he is only an ordinary white collar worker. (More) | |
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Snapshot of jubilant movie mogul
Looking back on 2007, Wang Zhongjun said that he felt extremely happy. China has witnessed flourishing development during the past 7 years. "Fortunately, Huayi Brothers seized their chance," said Wang. (More) | |
